Alibaba: Game-Changing Catalysts To Drive The Stock

Summary:

  • Alibaba’s stock is poised to rise due to multiple positive catalysts and a reasonable valuation.
  • China’s recent economic measures, including lowering the 7-day reverse purchase rate and required reserve ratio, aim to boost liquidity and stimulate economic activity.
  • These economic stimuli are expected to benefit BABA and other China-based companies by increasing economic activity/consumer sentiment.
  • Alibaba’s technical indicators are strong, showing the stock is back in a long-term uptrend, further supporting a positive outlook.

Alibaba company office in China

Robert Way

Alibaba (NYSE:BABA) has multiple positive catalysts that are likely to improve the company’s fundamentals and drive the stock higher. The valuation is reasonable, allowing room for the stock to increase further as earnings possibly increase at a

Return on Equity [ROE] 7%
Return on Invested Capital [ROIC] 6%
Return on Assets [ROA] 4%


Analyst’s Disclosure: I/we have a beneficial long position in the shares of BABA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The article is for informational purposes only (not a solicitation or recommendation to buy or sell stocks). David is not a registered investment adviser. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.

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